What are Zero Coupon Bonds ????

hey they are the bonds issued by Infrastructural Companies for their funds or what ever it may be.

n the interest paid by them on that bonds is exempt from tax

 A bond which pays no coupons, i.e it doesnt carry any interest. it's sold at a deep discount to its face value, and matures at its face value. Thus, the difference between the discounted value & the maturity price- represents the interest earned by the investor.